Germany on the Verge of Legalizing Cannabis: What It Means for the European Market

Germany could be on the brink of introducing sweeping reforms to legalize cannabis, marking a major shift in drug policy and potentially opening up Europe’s largest economy to the commercial sale of the drug. According to reports, Health Minister Karl Lauterbach has said the plans have received positive feedback from the European Commission, and that the bill could be announced as soon as the end of March or in early April. If approved, the new law could be phased in between now and mid-2024 and would make Germany the world’s largest regulated national cannabis market and the first country in the EU to permit its commercial sale.

Under the proposals, cannabis would no longer be classified as a narcotic, and people over the age of 18 would be allowed to carry up to 30 grams of the drug for personal use. In addition, consumers would be free to grow up to three plants at home, and licensed stores and pharmacies would be able to sell cannabis products. The government published draft proposals for the legalization of adult-use cannabis in October last year, with the aim of improving public health. Lauterbach insisted that the proposals would only progress to the Bundestag, Germany’s federal parliament, if they are compatible with EU law.

Germany’s legalization of cannabis would have significant implications for the rest of the EU, as it would be the first country in the bloc to permit the commercial sale of the drug. In the Netherlands, the growth and sale of cannabis to its so-called coffee shops is technically criminalized, though it is tolerated. Meanwhile, in other countries such as Malta, legalization is limited.

“If I can trust my sources in the government, the first change will come in May,” said Steffen Geyer, director of Hanf Museum, a Berlin-based hemp museum which he described as being “the heart of the German legalization movement for the past 30 years.” Geyer added that “May 1 [2023] will be seen as the day Germany legalized cannabis [for personal use],” noting that commercial legalization would likely follow next year.

Cannabis legalization is just one of a series of socially progressive policies proposed by Chancellor Olaf Scholz’s three-party “traffic light” coalition government, which entered into power in 2021 after 16 years of conservative rule. According to Lauterbach, around four million people in Germany used cannabis in 2021, and a quarter of all 18- to 24-year-olds in the country have tried it. The purpose of the proposed changes, he said, is to increase public oversight and reduce drug-related crime.

The government’s proposals have been met with excitement from many in the industry. Martin Chodorowski, account manager at Tom Hemp’s, a Berlin-based cannabidiol (CBD) retailer, said that “the government right now is by far the most open about this topic.” CBD is an active, but non-addictive, ingredient in cannabis, derived from the hemp plant. Its sale has been legal in Germany since 2017, provided that the Tetrahydrocannabinol (THC) content, the main psychoactive part of cannabis, is below 0.2%. Meanwhile, the sale of other cannabis products is prohibited.

Chodorowski welcomed the prospect of a more stable framework for suppliers and consumers of cannabis products, stating that “the chances for us as a German company are the highest they’ve been in a decade.” The legalization of cannabis could create an estimated 27,000 new jobs and bring in an additional €4.7bn ($5bn) per year in tax revenues, social security contributions and criminal prosecution savings, according to a 2021 study from Heinrich Heine University Dusseldorf.

However, the German government must tread a fine line in producing a bill that adheres to EU law while also meeting the demands of advocates for drug policy reform. In particular, the proposed legislation must be compatible with the United Nations’ Single Convention on Narcotic Drugs, which regulates the production and supply of controlled substances. The convention classifies cannabis as a Schedule I drug, meaning that it is considered to have a high potential for abuse and no accepted medical use.

Nevertheless, several countries have already legalized cannabis for medicinal or recreational use, including Uruguay, Canada, and several US states. The trend towards legalization has been driven by a growing recognition of the potential benefits of cannabis, both for medical purposes and as a source of tax revenue.

Proponents of cannabis legalization argue that it would bring several benefits, including reducing drug-related crime and providing a safer and more regulated market for cannabis products. In addition, legalization could help to address social inequalities by reducing the disproportionate impact of drug laws on marginalized communities, who are often subject to higher levels of policing and criminalization.

Opponents of legalization argue that it could lead to increased drug use and harm, particularly among vulnerable populations such as young people and those with mental health problems. There are also concerns that legalization could lead to the commercialization and corporatization of the cannabis industry, with large corporations dominating the market and smaller producers and retailers being squeezed out.

Despite these concerns, the trend towards legalization seems set to continue, with Germany poised to become the latest country to embrace cannabis reform. The proposed legislation represents a significant shift in drug policy, and could pave the way for other countries in Europe to follow suit.

In conclusion, Germany’s move towards legalizing cannabis could mark a major shift in drug policy and have significant implications for the rest of Europe. If approved, the new law would make Germany the world’s largest regulated national cannabis market and the first country in the EU to permit its commercial sale. The proposed legislation has been met with excitement from many in the industry, who see it as a chance to create a more stable framework for suppliers and consumers of cannabis products, and to generate significant tax revenue and job opportunities. However, the German government must tread a fine line in producing a bill that adheres to EU law and the United Nations’ Single Convention on Narcotic Drugs while also meeting the demands of advocates for drug policy reform. (Source)

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